IBP Business Practice Update

The 2013 business culture review is due to take place on 14 March 2013. As usual we are expecting delegates were all around the world to come and talk about the various business practices that will see the world economy forward as we reach the end of the projected recession period 2007 to 2015.

Last year's meeting proved a very fruitful event and many of the actions discussed there have indeed completed to schedule, looking at the hundred and twelve different actions and procedures that were originally mooted, 70 of them were due to complete by the time this message went out on 17th December 2012 and were happy to report that all of them have indeed finished.

Realigning individual fiscal priorities for companies and major corporations throughout Europe and the Far East has not proved as easy as many originally thought. Lowering the expectations of shareholders has proved to be more difficult and a reduction in dividends has not been taken well by many particularly those in the blue market sector. The 12% yield year on year between 1987 and 2007 has been replaced by an average yield of 1.4% since then. The pointers are that recessions in the intervening time such as 1992 and 1997 did not promote such a long reduction in expected yields for premium shares.

Taking the issue is a little further our main shareholder the David Smith Group Plc has expended much time and energy travelling the world to all major financial sectors and introducing the idea of deep fiscal management with a cash overlay percentage of greater than 14% as a buffer against future depreciation in individual market standing as an explicit buffer against future drops in either share price or dividend yield..

While this was seen as a radical idea as recently as 2010, analysis of companies who have adopted this as best practice shows a 100% improvement in terms of cash flow and their ability to obtain financial insurance and assurance on the open market. A cache buffer is appreciated by risk management and, despite there being little opportunity to earn a return on this cash as part of an individual corporations return on investment and cash flow forecast, it is true to say that offsetting a lump sum set-aside against reductions in insurance and financial risk cost offers individual porfit entities a backdoor capital and ROI benefit greater than any percentage that a normal investment might offer.

From 2014 onwards were hoping to increase the membership of our society to around 14,000 large businesses. Also our definition of large business has changed somewhat and to qualify an individual entity must now employ at least 1500 people and/or have an annual turnover of at least US$10 million. Although those two are very unlikely to occur in parity it does allow a little bit of flexibility for the standing committee to decide which companies would benefit from joining a union and which would not.

The final piece of news is for the conference due to take place in September of 2030. This will occur in Cancun in Mexico at the usual venue. There are seatings arrangements for up to 11,000 people over the three-week period. It is hoped that as many as possible can attend and there will be at least a partial rollout of the new decisions created at the March meeting. The intervening six months will give us time to print and assess the situation is as required so the necessary documentation is available for delegates to take with them.

As thiese decisions affect the lives and livlihoods of approximately one hundred and fourteen million people in the USA and Northern Europe, it has been decided to make this document open domain. Good luck for the future.